It seems that the Russian Arctic Shelf’s oil will be all under control of two state companies: Gazprom and Rosneft. The Federal Mineral Agency approved the companies’ applications for over a dozen new licences in the area.

These decisions make the number of prospective areas in the shelf left is rapidly shrinking. It leaves limited opportunities for private companies to get in the game.

Firstly, the Ministry of Natural Resources proposed to open the shelf for private companies. But today’s legislation allows only state-controlled companies with at least five years of offshore experiences to operate on the Arctic shelf.

Lukoil and Zarubezhneft, companies that are interested in operating in the Arctic waters, are fighting hard to break the monopoly of two state-controlled giants. It is a very difficult struggle, because heads of Gazprom and Rosneft concentrate their efforts not to let other companies get offshore licences on the shelf.

What do you think about Russia’s managing on the Arctic shelf? Should it let private companies operate in the area?

Photo by Gazprom.ru

About author

Joanna Wilaszek

Editor-in-chief of YoungPetro, for almost three years engaged in work of the editorial board. Member of the board of AGH UST SPE Student Chapter and a fourth-year student of Mining and Geology on Drilling, Oil and Gas Faculty at AGH University. Her hobbies are: travelling, dance and skiing.